ERC Resolution No. 24, Series of 2026 – Suspension of PDS Charges for ESS Storage Intake

ERC temporarily suspended Power Delivery Service charges on electricity withdrawn by registered energy storage systems for grid-support purposes, reducing costs for ESS operations and supporting system reliability during the national energy emergency.

7/17/20262 min read

SUMMARY

WHAT IT IS

A temporary regulatory measure suspending Power Delivery Service (PDS) charges on qualified Energy Storage Systems (ESS) when withdrawing electricity from the grid for storage, under specific conditions and as an emergency intervention.

  • Registered ESS operators

  • NGCP

WHO IS AFFECTED

KEY DEADLINES

  • Takes effect immediately after publication in a newspaper of general circulation or the Official Gazette.

  • NGCP must submit implementing guidelines to ERC within fifteen (15) days from effectivity.

  • ESS registration with NGCP required; NGCP must process within five (5) working days of complete application.

TAKEAWAY

  • ESS operators should ensure registration with NGCP and compliance with metering and reporting requirements to benefit from the suspension of PDS charges.

  • NGCP must promptly process registrations and submit required guidelines to ERC.

KEY POINTS
  • Scope: Applies to Energy Storage Systems (ESS) withdrawing electricity from the grid for storage and subsequent re-injection, not for final end-use consumption.

  • Covered Entities: All ESS facilities (existing, under development, or future) registered with the National Grid Corporation of the Philippines (NGCP).

  • Requirement: ESS facilities must register with NGCP; NGCP must process registrations within five (5) working days of complete application.

  • Threshold: Suspension of Power Delivery Service (PDS) charges applies only to "Qualified ESS Storage Intake Energy"—energy separately metered and intended solely for storage and grid-support functions.

  • Compliance Obligation: ESS must ensure separate metering or verifiable measurement of storage intake energy per NGCP billing and metering procedures.

  • Mechanism Introduced: Suspension of PDS charges during the ESS charging/storage-intake cycle for qualified energy; such energy is excluded from load billing determinants.

  • Deadline: NGCP must submit implementing guidelines to ERC within fifteen (15) days from effectivity, covering registration, metering, billing, and verification procedures.

  • Sunset/Review Provision: The suspension is temporary, subject to periodic review, and will automatically lapse unless ERC finds continued system benefits.

  • Limitation: The measure does not establish a permanent or across-the-board transmission pricing treatment for ESS and is adopted under emergency conditions per EO No. 110.

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ERC Resolution No. 24, Series of 2026

  • Detailed policy analysis

  • Operational and compliance implications

  • Stakeholder impact assessment

  • Risk flags and ambiguities

  • Suggested next actions

PREMIUM REGULATORY ANALYSIS

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Tags: PDS Charge Suspension, Energy Storage Systems, ESS Registration, Grid Withdrawal, Temporary Measure, NGCP Compliance

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